One question we often get from our clients and radio listeners is what markets to invest in from a global perspective.
Despite the fact that we’ve endured a tumultuous economy over the past 5-6 years, we still believe investors should consider weighing their investment portfolio heavily toward U.S. companies.
Take for example the issue in Cyprus. This issue had investors spooked more because of the possible ripple effects it could have on larger countries in Europe, more so than the impact for the country itself. Even with the recent events in Europe and the early reports out of Cyprus, we continue to believe that this current bull run likely has some legs to it.
Recently on our radio show, our Chief Investment Strategist (Wes Moss), also discussed the outlook for U.S. companies. And he wrapped up the first half hour of his show with an ETF to watch – Vanguard Dividend Appreciation ETF (VIG). This fund has more than 99% of U.S. companies represented in industries ranging from consumer goods to healthcare and industrial companies. Over the past ten years, the fund has consistently paid out dividends and averages a 2.1% yield. This is one example of the type of investing in U.S. portfolios that we think makes a good opportunity.
Nevertheless, the markets are up, and the rule of thumb is to invest when markets are down and not up. For those of you already vested in portfolios with U.S. companies, you can expect for more stability from your investments there than some other countries.